Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

1. Marketing’s Role in the
   Global Economy

Text © The McGraw−Hill

Companies, 2002

10 Chapter 1

has a sale and an ongoing relationshipwith the customer. Then, in the future, when

the customer has the same need again—or some other need that the firm can

meet—other sales will follow. That’s why we emphasize that marketing concerns a

flowof need-satisfying goods and services to the customer. Often, that flow is not

just for a single transaction but rather is part of building a long-lasting relationship

that is beneficial to both the firm and the customer.

Since you are probably preparing for a career in management, the main focus of

this text will be on micro-marketing. We will see marketing through the eyes of the

marketing manager.

It is important to keep in mind that the micro-marketing ideas and decision areas

we will be discussing throughout this text apply to a wide variety of situations. They

are important not only for large and small business firms but also for all types of

public sector and nonprofit organizations. They apply to new ventures started by a

single entrepreneur as well as to ongoing efforts by teams of people in corporations.

They are useful in domestic markets and international markets and regardless of

whether the organization focuses on marketing physical goods, services, or an idea

or cause. They are equally critical whether the relevant customers or clients are

individual consumers, businesses, or some other type of organization. In short, every

organization needs to think about its markets and how effectively it meets its cus-

tomers’ or clients’ needs. For editorial convenience, and to reflect the fact that most

readers will work in business settings, when we discuss marketing concepts we will

sometimes use the term firmas a shorthand way of referring to any type of organi-

zation, whether it is a political party, a religious organization, a government agency,

or the like. However, to reinforce the point that the ideas apply to all types of orga-

nizations, throughout the book we will illustrate marketing management concepts

with examples that represent a wide variety of marketing situations.

Although micro-marketing is the primary focus of the text, marketing managers

must remember that their organizations are just small parts of a larger macro-

marketing system. Therefore, the rest of this chapter will look at the macro view of

marketing. Let’s begin by defining macro-marketing and reviewing some basic ideas.

Then, in Chapter 2, we’ll explain the marketing management decision areas we will

be discussing in the rest of the book.

Macro-marketingis a social process that directs an economy’s flow of goods and

services from producers to consumers in a way that effectively matches supply and

demand and accomplishes the objectives of society.

Like micro-marketing, macro-marketing is concerned with the flow of need-

satisfying goods and services from producer to consumer. However, the emphasis

with macro-marketing is not on the activities of individual organizations. Instead,

the emphasis is on how the whole marketing system works.This includes looking at

how marketing affects society, and vice versa.

Every society needs a macro-marketing system to help match supply and demand.

Different producers in a society have different objectives, resources, and skills. Like-

wise, not all consumers share the same needs, preferences, and wealth. In other

Emphasis is on whole
system

The Focus of This Text_Management-Oriented Micro-Marketing

Macro-Marketing Defined